Introduction to Statistics and Data Analysis
5th Edition
ISBN: 9781305115347
Author: Roxy Peck; Chris Olsen; Jay L. Devore
Publisher: Brooks Cole
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 10.3, Problem 30E
The paper “Debt Literacy, Financial Experiences and Over-Indebtedness” (Social Science Research Network, Working paper W14808, 2008) included analysis of data from a national sample of 1000 Americans. One question on the survey was:
“You owe $3000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rate of 12% (or 1% per month), how many years would it take to eliminate your credit card debt if you made no additional charges?”
Answer options for this question were: (a) less than 5 years; (b) between 5 and 10 years; (c) between 10 and 15 years; (d) never—you will continue to be in debt; (e) don’t know; and (f) prefer not to answer.
- a. Only 354 of the 1000 respondents chose the correct answer of never. For purposes of this exercise, assume that the sample is representative of adult Americans. Is there convincing evidence that the proportion of adult Americans who can answer this question correctly is less than 0.40 (40%)? Use α = 0.05 to test the appropriate hypotheses. (Hint: See Example 10.10.)
- b. The paper also reported that 37.8% of those in the sample chose one of the wrong answers (a, b, and c) as their response to this question. Is it reasonable to conclude that more than one-third of adult Americans would select a wrong answer to this question? Use α = 0.05.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The selling prices of mutual funds change daily. In order to study these changes, a sample of mutual funds was examined and the daily changes in price are listed below. (Round answers to 3 decimal places)
0.32, -0.17, 0.26, -0.03, -0.01, 0.18, 0.33, 0.28, 0.02, -0.29, -0.08, 0.12, 0.07, 0.03, 0.28
a) Using a calculator find Q1, Q3, median and IQR
b) Determine the lower and upper fences. (Show work)
c) Identify the outliers (if any) in this set
investigating the effect of interest rate on the number of houses sold across the 81 cities in Turkey from 1990 to 2020 is an example of using a.control data b.panel data c.cross sectional data d.times series data
You are a financial analyst for a brokerage firm. Is there a difference in dividend yield between stocks listed on the NYSE & NASDAQ? You collect the following data: NYSE NASDAQ Number 20 24 Sample mean 3.5 2.5 Sample std dev 1.30 1.16
Chapter 10 Solutions
Introduction to Statistics and Data Analysis
Ch. 10.1 - Explain why the statement x=50 is not a legitimate...Ch. 10.1 - For the following pairs, indicate which do not...Ch. 10.1 - To determine whether the pipe welds in a nuclear...Ch. 10.1 - Prob. 4ECh. 10.1 - Prob. 5ECh. 10.1 - Prob. 6ECh. 10.1 - Prob. 7ECh. 10.1 - A researcher speculates that because of...Ch. 10.1 - A county commissioner must vote on a resolution...Ch. 10.1 - A cruise ship charges passengers 3 for a can of...
Ch. 10.1 - Prob. 11ECh. 10.2 - Prob. 12ECh. 10.2 - Prob. 13ECh. 10.2 - Medical personnel are required to report suspected...Ch. 10.2 - Prob. 15ECh. 10.2 - A television manufacturer claims that (at least)...Ch. 10.2 - A manufacturer of hand-held calculators receives...Ch. 10.2 - Water specimens are taken from water used for...Ch. 10.2 - Suppose that for a particular hypothesis test, the...Ch. 10.2 - Suppose that you arc an inspector for the Fish and...Ch. 10.2 - Prob. 21ECh. 10.2 - An automobile manufacturer is considering using...Ch. 10.3 - Use the definition of the P-value to explain the...Ch. 10.3 - For which of the following P-values will the null...Ch. 10.3 - Prob. 25ECh. 10.3 - Let p denote the proportion of students at a...Ch. 10.3 - Assuming a random sample from a large population,...Ch. 10.3 - Prob. 28ECh. 10.3 - In a survey of 1000 women age 22 to 35 who work...Ch. 10.3 - The paper Debt Literacy, Financial Experiences and...Ch. 10.3 - "Most Like it Hot" is the title of a press release...Ch. 10.3 - In a survey of 1005 adult Americans, 46% indicated...Ch. 10.3 - Prob. 33ECh. 10.3 - Prob. 34ECh. 10.3 - Prob. 35ECh. 10.3 - Prob. 36ECh. 10.3 - Prob. 37ECh. 10.3 - The article Cops Get Screened for Digital Dirt...Ch. 10.3 - Refer back to the previous exercise. The actual...Ch. 10.3 - The report 2007 Electronic Monitoring ...Ch. 10.3 - Prob. 41ECh. 10.4 - Prob. 42ECh. 10.4 - Give as much information as you can about the...Ch. 10.4 - Paint used to paint lines on roads must reflect...Ch. 10.4 - A certain pen has been designed so that actual...Ch. 10.4 - Prob. 46ECh. 10.4 - The paper Playing Active Video Games Increases...Ch. 10.4 - Prob. 48ECh. 10.4 - Prob. 49ECh. 10.4 - Prob. 50ECh. 10.4 - Prob. 51ECh. 10.4 - Medical research has shown that repeated wrist...Ch. 10.4 - Prob. 53ECh. 10.4 - A comprehensive study conducted by the National...Ch. 10.4 - Prob. 55ECh. 10.4 - The paper titled Music for Pain Relief (The...Ch. 10.4 - Many consumers pay careful attention to stated...Ch. 10.4 - Much concern has been expressed regarding the...Ch. 10.5 - The power of a test is influenced by the sample...Ch. 10.5 - Prob. 60ECh. 10.5 - Let denote the mean lifetime (in hours) for a...Ch. 10.5 - The city council in a large city has become...Ch. 10.5 - The amount of shaft wear after a fixed mileage was...Ch. 10.5 - Optical fibers are used in telecommunications to...Ch. 10.5 - Prob. 65ECh. 10.6 - In 2006, Boston Scientific sought approval for a...Ch. 10.6 - The article Boy or Girl: Which Gender Baby Would...Ch. 10 - Prob. 68CRCh. 10 - In a national survey of 2013 adults, 1590...Ch. 10 - Students at the Akademia Podlaka conducted an...Ch. 10 - Prob. 71CRCh. 10 - Prob. 72CRCh. 10 - A number of initiatives on the topic of legalized...Ch. 10 - Prob. 74CRCh. 10 - Prob. 75CRCh. 10 - Prob. 76CRCh. 10 - Prob. 77CRCh. 10 - Duck hunting in populated areas faces opposition...Ch. 10 - Past experience has indicated that the response...Ch. 10 - An automobile manufacturer who wishes to advertise...Ch. 10 - A student organization uses the proceeds from a...Ch. 10 - A hot tub manufacturer advertises that with its...Ch. 10 - Prob. 1CRECh. 10 - Prob. 2CRECh. 10 - Prob. 3CRECh. 10 - Prob. 4CRECh. 10 - Prob. 5CRECh. 10 - The article Should Canada Allow Direct-to-Consumer...Ch. 10 - Prob. 7CRECh. 10 - It probably wouldnt surprise you to know that...Ch. 10 - The article Doctors Cite Burnout in Mistakes (San...Ch. 10 - The National Geographic Society conducted a study...Ch. 10 - Heinz Plays Catch-up After Under-Filling Ketchup...Ch. 10 - In a survey conducted by Yahoo Small Business,...Ch. 10 - In an AP-AOL sports poll (Associated Press,...Ch. 10 - Prob. 14CRECh. 10 - A survey of teenagers and parents in Canada...Ch. 10 - The same survey referenced in the previous...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- 5arrow_forwardA sample of 20 financial analysts was asked to provide forecasts of earnings per share of a corporation for next year. The results are summarized in the following table:Forecast ($ per share) Number of Analysts$9.95 to under $10.45 2$10.45 to under $10.95 8$10.95 to under $11.45 6$11.45 to under $11.95 3$11.95 to under $12.45 1a. Estimate the sample mean forecast.b. Estimate the sample standard deviation.arrow_forwardBorrowing money may be necessary for business expansion. However, too much borrowed money can also mean trouble. Are developing countries tending to borrow more? A random sample of 20 developing countries gave the following information regarding foreign debt per capita (in U.S. dollars, inflation adjusted). (Reference: Handbook of International Economic Statistics, U.S. Government Documents.) Country 1 2 3 4 5 6 7 8 9 10 Modern Debt per Capita 175 152 125 124 95 83 34 29 21 89 Historic Debt per Capita 147 134 86 113 58 62 33 36 49 72 Country 11 12 13 14 15 16 17 18 19 20 Modern Debt per Capita 23 28 18 29 197 189 144 124 102 71 Historic Debt per Capita 24 12 12 29 106 156 145 119 118 76 Does this information indicate that foreign debt per capita is increasing in developing countries? Use a 0.01 level of significance. (a) What is the level of significance? Compute the sample test statistic. Find the P-value of the sample test statistic.arrow_forward
- Walmart predicted the following end-of-year earnings from 2003 - 2012 in billions of dollars (9.5, 9.8, 10.2, 10.7, 10.5, 11.0, 12.1, 14.7, 16.3, 18.7). Their actual end-of- year earnings for the same years are as follows: 9.1, 9.2, 10.6, 10.3, 9.9, 10.4, 11.6, 11.8, 13.1, 22.7). In testing the claim that the mean predicted value is the same as the mean actual value, which p-value is correct? 0.228 0.456 0.779 0.05 4arrow_forwardA survey is conducted on 700 Californians older than 30 years of age. The study wants to obtain inference on the relationship between years of education and yearly income in dollars. The response variable is income in dollars and the explanatory variable is years of education. A simple linear regression model is fit, and the output from R is below: Im(formula = Income ~ Education, data = CA) Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) 25200.25 1488.94 16.93 3.08e-10 *** Education 2905.35 112.61 25.80 1.49e-12 *** Residual standard error: 32400 on 698 degrees of freedom Multiple R-squared: 0.7602arrow_forwardBorrowing money may be necessary for business expansion. However, too much borrowed money can also mean trouble. Are developing countries tending to borrow more? A random sample of 20 developing countries gave the following information regarding foreign debt per capita (in U.S. dollars, inflation adjusted). (Reference: Handbook of International Economic Statistics, U.S. Government Documents.) Country 1 2 3 4 5 6 7 8 9 10 Modern Debt per Capita 175 152 123 121 99 89 39 22 24 87 Historic Debt per Capita 145 137 85 114 59 67 33 31 45 76 Country 11 12 13 14 15 16 17 18 19 20 Modern Debt per Capita 26 25 12 23 193 182 142 124 107 78 Historic Debt per Capita 28 12 14 27 105 151 143 114 116 73 Does this information indicate that foreign debt per capita is increasing in developing countries? Use a 0.05 level of significance. (a) What is the level of significance?State the null and alternate hypotheses. H0: Distributions are the same.H1: Modern debt distribution is…arrow_forward
- To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent total returns. The percent total return includes the stock price change plus the dividend payment for the quarter. Excel File: data11-06.xlsx 20.0 -20,5 12.2 12.6 10.5 -5.8 -18.7 15.3 a. What is the value of the sample mean (to 1 decimal)? What is its interpretation? This is the estimate of the Select your answer v mean percent total return per quarter for General Electric. b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for General Electric (to 2 decimals). Variance: Standard deviation: c. Construct a 95% confidence interval for the population variance (to 2 decimals). Use Table 11.1. d. Construct a 95% confidence interval for the population standard deviation (to 2 decimals). Use Table 11.1.arrow_forwardOfficial unemployment rates for the U.S. population are reportedon a monthly basis by the Bureau of Labor Statistics.For the period October, 2011, through January, 2012, theofficial unemployment rates were 8.9% (Oct.), 8.7% (Nov.),8.5% (Dec.), and 8.3% (Jan.). (Source: U.S. Bureau of LaborStatistics, www.bls.gov.) If the unemployment rateswere to continue to decrease following a linear model,(a) predict the unemployment rate on January, 2013.(b) predict when the United States would reach a zero unemploymentrate.arrow_forwardBorrowing money may be necessary for business expansion. However, too much borrowed money can also mean trouble. Are developing countries tending to borrow more? A random sample of 20 developing countries gave the following information regarding foreign debt per capita (in U.S. dollars, inflation adjusted). (Reference: Handbook of International Economic Statistics, U.S. Government Documents.) Country 1 2 3 4 5 6 7 8 9 10 Modern Debt per Capita 171 151 122 124 97 84 32 24 28 81 Historic Debt per Capita 146 135 84 111 52 67 34 31 46 76 Country 11 12 13 14 15 16 17 18 19 20 Modern Debt per Capita 26 24 18 25 191 183 146 129 102 79 Historic Debt per Capita 25 13 14 29 103 153 149 115 116 72 Does this information indicate that foreign debt per capita is increasing in developing countries? Use a 0.01 level of significance. (a) What is the level of significance? (b) Compute the sample test statistic. (Round your answer to two decimal places.) (c) Find the P-value…arrow_forward
- To analyze the risk, or volatility, associated with investing in General Electric common stock, consider a sample of the eight quarterly percent total returns. The percent total return includes the stock price change plus the dividend payment for the quarter. Excel File: data11-06.xlsx 20.0 -20.5 12.2 12.6 10.5 -5.8 -18.7 15.3 a. What is the value of the sample mean (to 1 decimal)? What is its interpretation? This is the estimate of the-Select your answer-mean percent total return per quarter for General Electric. b. Compute the sample variance and sample standard deviation as measures of volatility for the quarterly return for General Electric (to 2 decimals). Variance: Standard deviation: c. Construct a 95% confidence interval for the population variance (to 2 decimals). Use Table 11.1. sots d. Construct a 95% confidence interval for the population standard deviation (to 2 decimals). Use Table 11.1. sos ReadSpeakerarrow_forwardI need help!arrow_forwardAn asset has a depreciable basis of $13,200 and qualifies as 3-year MACRS property. The MACRS percentages are: 16.67, 33.33, 33.33. and 16.67 percent for years 1 to 4, respectively. What is the year 3 ending book value?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Which is the best chart: Selecting among 14 types of charts Part II; Author: 365 Data Science;https://www.youtube.com/watch?v=qGaIB-bRn-A;License: Standard YouTube License, CC-BY